Question
Suppose the US government is considering the possibility of increasing the coverage of the deposit insurance scheme from USD 250000 to USD 1000000. a) Following
Suppose the US government is considering the possibility of increasing the coverage of the deposit insurance scheme from USD 250000 to USD 1000000.
a) Following this increase, do you think the banks may compete more aggressively in collecting deposits? Why or why not?
b) How do you think higher deposit insurance fund coverage can affect the banks' effort in screening the loan applications and monitoring the loans it has allocated?
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Managerial economics
Authors: william f. samuelson stephen g. marks
7th edition
9781118214183, 1118041585, 1118214188, 978-1118041581
